“This was certainly novel technology developed at the university” with wide applications, Grover says. RPM Ventures, based in Ann Arbor, initially invested $115,000 in Arbor Phonetics in October 2007. So far, the company has raised about $5 million.

The startup’s technology can produce a laser with five to seven times more power than ordinary lasers, he says.

“Traditional technology has reached a ceiling in performance,” Grover says. “Then Arbor Photonics comes along and breaks through [with lasers] none of the existing companies can match.”

The startup has landed its first customers and is starting to generate revenue, he says. Arbor Photonics estimates it will generate about $30 million to $35 million in sales by 2015.

“We’ve very pleased with the progress that they have made so far,” Grover says. CEO Phillip Amaya has had to “navigate a very difficult downturn these past couple of years. They are on the verge now…an exciting stage when they’re transitioning from [research and development] to commercial products.”